Delayed Homeownership: The Structural Shift Fueling Long-Term Multifamily Investment Growth

The American dream of homeownership is undergoing its most dramatic shift in decades, and it’s transforming the housing market. According to the National Association of Realtors (NAR), the median age of first-time homebuyers has climbed to 40 years old, an all-time high. In the 1980s, first-time buyers typically purchased homes in their late 20s; even just five years ago, that age was 33. Today, affordability challenges, elevated mortgage rates, and historically limited inventory have pushed younger buyers out of reach of the for-sale market. As a result, people are renting longer, and more intentionally, than generations that preceded them.

The share of first-time home buyers has fallen to 21%, the lowest level since NAR began tracking in 1981. With fewer buyers entering the market, starter homes are sitting longer and seeing price reductions. But even with discounts, high prices and financing costs are keeping ownership out of reach for a large portion of middle-income Americans.

Renting is no longer a temporary stop on the path to ownership. For many households, it has become a long-term reality, one that will reshape the housing landscape for years to come.

The Changing Profile of First-Time Home Buyers

Recent Realtor.com data provides further clarity: The average down payment for first-time buyers is 10%, the highest since 1989.The typical household income for these buyers is $94,400, underscoring how even solid earners struggle with today’s prices.Demographically, buyers are increasingly diverse — 25% single women, 10% single men, and 50% married couples —yet united by similar affordability constraints. *

These dynamics collectively point to one conclusion: ownership has slipped further from reach, increasing the number of renters by necessity, not choice.

A Demand Spike That’s Reshaping Multifamily

This shift is creating persistent and accelerating demand for multifamily housing. Vacancy rates remain tight in many cities, and national projections indicate the U.S. will require 4.3 million new apartment units by 2035 to keep pace with demand. The shortfall is so severe that some markets are facing structural undersupply that will extend well into the next decade. Today’s renters are not looking for temporary alternatives; they are looking for flexibility, community, high-quality amenities, and long-term livability. Modern multifamily communities meet these expectations better than older stock or single-family rentals. Together, these factors underscore a lasting change in the housing landscape, one that will continue to drive strong and sustained demand for multifamily living.

Meeting Market Demand Through Scaled, Strategic Multifamily Development

Roers Companies is uniquely positioned to meet this unprecedented need. With more than 15,500 units built or under construction nationwide, Roers Cos. continues to expand development activity precisely because market fundamentals support — and demand — more high-quality rental housing. Roers Cos.’ vertically integrated model provides significant advantages in this environment:

– Efficient delivery and cost control through in-house development, construction, and property management.

– Product diversity, including market-rate, affordable, and workforce housing, ensuring alignment with a wide range of renter needs.

– Strategic market selection targeting undersupplied, high-growth metros where renters are increasingly priced out of homeownership.

As delayed homeownership widens the housing gap, Roers Cos.’ projects directly help expand supply while positioning investors for sustainable, long-term performance in a high-demand asset class.

Roers Cos. Is Positioned to Lead as Multifamily Demand Accelerates

The rising age of first-time homebuyers signals more than an economic shift, it marks a cultural one. Renting is becoming a preferred or necessary long-term lifestyle driven by financial realities, flexibility, and the desire for amenity-rich living environments. Multifamily is no longer a bridge to purchasing a home; for millions of Americans, it is the housing solution.

Roers Cos. remains committed to delivering vibrant, attainable communities in markets where demand is strongest and supply remains constrained. To learn more about Roers Cos.’ investment strategies and multifamily development approach, please contact your investor relations professional or contact the investor relations team here.

Date Published 11/20/2025

Sources: National Association of Realtors, The New York Times, Realtor.com, NMHC

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